Roadrunner Transportation Systems Inc. in Illinois has announced it will spin-off Ascent Global Logistics to provide a stock dividend to its shareholders.
In an effort to maximize growth, Roadrunner’s Ascent Global Logistics Inc. is now a separate operation encompassing Ascent Domestic, Ascent International, and Ascent On-Demand. Combined, Ascent Global is set to be headquartered in Belleville, effective in August.
The spin-off is subject to final approval by the Roadrunner board of directors and tax and legal considerations. Expected to be complete in August, the proposal would create two independent companies: Roadrunner and privately held Ascent.
“With the actions announced today, we are left with two companies positioned to deliver significant value for their customers and investors,” says Chris Jamroz, executive chairman of Roadrunner.
Ascent will look to be a market leader in domestic freight management, international freight forwarding, and expedited transportation services on the ground and in the air. Upon completion of the proposal, Tom Stenglein, currently the president of Ascent On-Demand, will become president of Ascent Global Logistics, which will encompass Ascent Domestic, Ascent International, and Ascent On-Demand.
After completion of the spin-off, Roadrunner Transportation Systems will be doing business as Roadrunner Freight and will encompass the less-than-truckload and truckload shipping businesses. Frank Hurts, who has served as the president of Roadrunner Freight since 2017, will be named the president of Roadrunner.
Roadrunner’s board saw the spin-off as an opportunity to create shareholder value, reduce corporate spending, and build each business uniquely to maximize growth. Roadrunner will provide stockholders with an information statement on its website that will further explain and breakdown the proposal and its new changes.